VII.C: Use of Resources
Align use of resources with the strategic plan Other Information:
147. The use of UNDP regular and other resources for the period 2008-2011 will be aligned to the strategic plan and distributed
across budget categories. The draft strategic plan precedes and informs decisions on the programming arrangements and the
biennial support budget. 148. The following broad directions for UNDP regular resources are under consideration: (a) The current
classification of countries (low income, middle income, net contributor) on the basis of indexed classification thresholds
of GNI per capita will be maintained. This will preserve universality and take into account shifts in relative growth, priority
of target for resource assignment from the core (TRAC) funding for countries with lower per capita income. (b) The current
distinction between fixed lines and variable lines will be maintained, whilst their distribution among budget categories in
accordance with the strategic plan will be reviewed. (c) The key features of the TRAC allocation methodology will be maintained,
while (i) adjusted for updated GNI per capita and population data (TRAC-1); (ii) simplified in the allocation of resources
with a decreased administrative burden for implementation at country level (TRAC-2); and (iii) ensuring a balance between
TRAC-1 and TRAC-2 allocation levels. (d) The preparation of the biennial support budget should meet three conditions: (i)
Enabling the implementation of the strategic plan, after discussion and approval by the Executive Board; (ii) Responding to
the requirements for results-based budgeting, with the necessary adjustment in the classification of costs; (iii) Harmonizing,
where applicable, with UNICEF and UNFPA on results-based budgeting as well as on the timing of decision-making by the respective
Boards. 149. The following considerations are proposed to frame the use of resources: (a) Over a four-year period (2008-2011),
the estimated overall availability of regular and other resources (in nominal terms) for UNDP is projected at $20.5 billion.
On the assumption of harmonizing cost classification among the United Nations funds and programmes, there will be an allocation
of approximately $18.5 billion (90.2 per cent) for programmes and related costs; $1.5 billion (7.3 per cent) for management
functions and approximately $500 million (2.4 per cent) for United Nations coordination. This would include an attribution
of approximately $500 million of management/development effectiveness costs to programme expenditure in line with the practice
of partner organizations. On an annualized basis, the estimate for United Nations system coordination ($125 million) amounts
to approximately 0.8 per cent of the total funding for United Nations system operational activities in the year 2005. (b)
Resource growth will be apportioned to ensure a maximum possible allocation for programming arrangements with necessary provisions
to fulfill management functions. This is based on the assumption of adequate donor contributions and/or burden-sharing arrangements
between agencies, funds and programmes. This apportioning will be guided by a consistent effort to: (i) Prioritize additional
resource allocation for programme expenditures over management expenditures, with overall proportion of resources for programmes
remaining at current levels or increasing; and (ii) Ensure that the allocation of additional resources supports strategic
plan objectives, taking into account the short-term emphasis on building the necessary infrastructure for United Nations coordination.
Both income and budget projections foresee no re-allocation from programme to management items. (c) The costs of functions
associated with the management of resources derived from bilateral, multilateral and programme country contributions will
be met through the application of UNDP cost recovery policy consistent with Executive Board decision 2007/18 on this matter.
Indicator(s):
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